CFPB can pursue lawsuit over sale of settlement payments - ruling

The Consumer Financial Protection Bureau can proceed with a lawsuit against Access Funding, a Maryland company accused of misleading consumers into signing away legal settlement payments in exchange for marked-down lump sums, a federal judge ruled.

In a decision on Wednesday, U.S. District Judge Frederick Motz rejected a motion to dismiss claims that Access Funding violated the Consumer Financial Protection Act (CFPA), saying the CFPB adequately alleged that the company engaged in abusive practices to cash in on consumers’ income streams.

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